Agricultural lenders expect farm income, which weakened in the spring, to continue to decline this summer, although a recent rally in corn, soybean, and wheat prices will act as a stabilizer, said Federal Reserve banks in Kansas City, Minneapolis, and St. Louis on Thursday.
In conjunction with World Food Day, agricultural lender Rabobank announced a global program, "Kickstart Food," to encourage sustainable food production, beginning with a $1-billion "facility" for land restoration and forest protection. The facility was launched in partnership with the UN Environment Program.
Ag bankers are charging higher interest rates and allowing longer repayment periods because of persistently lower farm income, says the Ag Finance Databook published by the Federal Reserve. The quarterly publication says farm loan volume was down 7 percent during the first six months of this year compared to January-June 2016.